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Nairaland Forum / Nairaland / General / Education / How To Solve Discounted Pay Back Period (247 Views)
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How To Solve Discounted Pay Back Period by nnamdismart25(m): 10:42pm On Jun 10, 2019 |
Please how do i solve this discount payback period eg 100000000 as cash flow and 25% as discount rate |
Re: How To Solve Discounted Pay Back Period by justflow1(m): 7:40am On Jun 11, 2019 |
A/(1+r)^n Where n is the year A is the amount R is the rate Use the discounting formular to calc for each year. Note: A is not constant, you keep replacing it with the discounted amount from prior computations until you get to your desired stappage year. Same as n-if you are computing for the 5th year for instance, n will be 5 |
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